NNOX - 3 Green Flags for Nano-X's Future
Nano-X Imaging (NASDAQ: NNOX) is one of the newest medical equipment companies to trade on the open market, but it's already facing a handful of maladies since its initial public offering (IPO) in August. Nano-X is the defendant in a shareholder lawsuit alleging that it misled investors regarding the capabilities of its flagship X-ray equipment. Its stock has suffered from a jarring collapse spurred by high-profile short-selling, from which it has yet to fully recover. In particular, the perennially critical Citron Research group claims that Nano-X's product is largely a fraud as a result of over-promising and under-delivering proof of its efficacy.
To address these allegations, the company has committed to demonstrating its technology at an upcoming healthcare conference. Time will tell whether the product is truly as capable as Nano-X claims. In the meantime, its stock has proven to be quite volatile, which may drive away more conservative investors. Nonetheless, the future may still be bright for Nano-X for three key reasons. Investors with a stomach for risk should take note.
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3 Green Flags for Nano-X's Future